Premium Essay

Null and Alternative Hypothesis

In: Business and Management

Submitted By lbjones17
Words 471
Pages 2
Applied Managerial Decision Making
Phase 3 Discussion Board
MGMT600-1501A-03
Null and Alternative Hypothesis
Instructor: Professor Dr. Throop, R.
February 2, 2015

Null and Alternative Hypothesis
A senior executive at Company W is having an issue understanding the concept of null and alternative hypothesis in the snack food research. In this paper, I will make it understandable for him to be able to see how this hypothesis’s work. Though it may be a little cryptic, the concept of null and alternative hypothesis is not very difficult. A null hypothesis is the speculation of a declaration that researchers hope to try to nullify or disprove. The alternative hypothesis is what the researcher actually believes to be the truth about the declaration (M.U.S.E, 2015). A hypothesis involves two types of statements: the null and alternative hypothesis. Statistical implication starts by identifying that research questions can be stated in conditions of a choice between two clear and mutually options. The only reason that null hypothesis and alternative hypothesis are different is chance. Let me break this down so that it will be easier to understand. I will break it down in a formula based statement in regards to the sack food industry. Let us look at this: A researcher must present a statement that is able to be proved or disproved. Once the expectation is known, then a counter statement is provided, which also known as the “null” hypothesis. We can represent this by using the term “H0” which means: H is the hypothesis and 0 is there is no difference. The next statement provided is the alternative hypothesis: HA meaning sub-one and is the conjecture of the expectation. With this being stated, we can look at the snack foods at Company W. In Company W’s case, you will be interested whether or not the situation has changed. Let us say breakfast bars for instant,…...

Similar Documents

Premium Essay

Hypothesis Testing

...Hypothesis Testing: One Population Hypothesis testing is used to make decisions about a population based on the analysis of sample statistics. There are always two hypothesis statements which are mutually exclusive and complementary statements concerning the value of the population parameter of interest: Null Hypothesis (H0): An assumption regarding a population parameter of interest. This hypothesis always includes the equal sign as the null hypothesis is assumed to be true unless sample data produces evidence to the contrary. Alternative Hypothesis (H1): The alternative option available when the null hypothesis is rejected. Three Types of Hypothesis Tests: Lower-Tail Test Upper-Tail Test Two-Tailed Test H0: ( ( (0 H0: ( ( (0 H0: ( = (0 H1: ( < (0 H1: ( > (0 H1: ( ( (0 Two-Sided Tests: A Two-Tailed Test (TTT) is designed to detect a change in the population parameter of interest from some hypothesized value to some different value. One-Sided Tests: A Lower-Tail Test (LTT) is designed to detect a change in the population parameter of interest from some hypothesized value to some lower value. An Upper-Tail Test (UTT) is designed to detect a change in the population parameter of interest from some hypothesized value to some greater value. Test Statistics and Action Limits: A test statistic is a sample statistic corresponding to the population parameter being tested. For example, when testing a......

Words: 2155 - Pages: 9

Premium Essay

Hypothesis

...A hypothesis is a conjecture about a population. Typically, these hypotheses will be stated in terms of a parameter. A test of hypothesis is a statistical procedure used to make a decision about the conjectured value of a parameter. We will make our decision based on observed values of a statistic. * The purpose of hypothesis testing is to determine whether there is enough statistical evidence in favor of a certain belief about a parameter. * There are two hypotheses which we are comparing. * The null hypothesis, H0, specifies a value of a parameter. This hypothesis is assumed to be true, and the collected data will be analyzed to see if it is contradictory to the null hypothesis. * The alternative hypothesis, Ha, gives an opposing statement about the value of the parameter. The collected data will be analyzed to see if it supports the alternative hypothesis. Example: * An operation manager needs to determine if the mean demand during lead time is greater than 350. * If so, changes in the ordering policy are needed. There are two hypotheses about a population mean: * H0: The null hypothesis m = 350 * Ha: The alternative hypothesis m > 350 Decision Rule: This tells us when we feel the observed data provided sufficient evident to conclude the alternative hypothesis is true. It will be phrased as: Accept the alternative hypothesis when the p-value of the test is less than a. Steps of the Test...

Words: 362 - Pages: 2

Premium Essay

Hypothesis

...Hypothes9 9.1 Fundamentals of Hypothesis Testing: One-Sample Tests A Connection Between Confidence Interval Estimation and Hypothesis Testing Can You Ever Know the Population Standard Deviation? USING STATISTICS @ Oxford Cereals, Part II Fundamentals of Hypothesis-Testing Methodology The Null and Alternative Hypotheses The Critical Value of the Test Statistic Regions of Rejection and Nonrejection Risks in Decision Making Using Hypothesis Testing Hypothesis Testing Using the Critical Value Approach Hypothesis Testing Using the p-Value Approach 9.4 Z Test of Hypothesis for the Proportion The Critical Value Approach The p-Value Approach Potential HypothesisTesting Pitfalls and Ethical Issues 9.5 9.2 t Test of Hypothesis for the Mean (S Unknown) The Critical Value Approach The p-Value Approach Checking the Normality Assumption One-Tail Tests The Critical Value Approach The p-Value Approach 9.6 Online Topic: The Power of a Test USING STATISTICS @ Oxford Cereals, Part II Revisited CHAPTER 9 EXCEL GUIDE CHAPTER 9 MINITAB GUIDE 9.3 Learning Objectives In this chapter, you learn: • The basic principles of hypothesis testing • How to use hypothesis testing to test a mean or proportion • The assumptions of each hypothesis-testing procedure, how to evaluate them, and the consequences if they are seriously violated • How to avoid the pitfalls involved in hypothesis testing • Ethical issues involved in hypothesis testing U S I N G S TAT I S T I...

Words: 23264 - Pages: 94

Free Essay

Hypothesis Testing

...Hypothesis Testing Hypothesis testing is basically a process that uses statistical inference to test claims about population parameters. In hypothesis testing we begin by making a tentative assumption about a population parameter. This assumption is called the null hypothesis and is denoted by Ho. We then define another hypothesis, called the alternative hypothesis, which is the opposite of what is stated is the null hypothesis. The alternative hypothesis is denoted by Ha. The hypothesis testing procedure involves using data from a sample to test the competing claims indicated by the null and alternate hypotheses. Testing the hypothesis is similar to a criminal trail. Ho: The defendant is innocent Ha: The defendant is guilty Just as the defendant in a criminal trial is assumed to be innocent, the null hypothesis is assumed to be true and given the benefit of the doubt. The testimony and evidence obtained during the trial provide the sample information. If the sample information is consistent with the assumption of innocence, the null hypothesis that the defendant is innocent cannot be rejected. On the other hand, if the sample information is inconsistent with the assumption of innocence, the null hypothesis is rejected and action is taken based on the alternative hypothesis that the defendant is guilty. Developing Null and Alternative Hypotheses In some applications it may not be obvious how the null and alternative hypotheses should be......

Words: 1769 - Pages: 8

Premium Essay

Hypothesis Testing

...able to fully understand hypothesis testing and the five steps involved in the complete process, one must first understand what a hypothesis and a hypothesis test is and why it is used. To begin with, a hypothesis, when involved in statistics, is an idea which could be set in the form of an assumption or a theory that shows the characteristics of a single or even multiple variables of a single or group of populations (Aron, Aron & Coups, 2009). These ideas or predictions need to be explored so as to give them validation, possibly creating further research, or these ideas need to be shown to be invalid, thus saving time by not putting more research into an idea that shows itself to be incorrect, however, sometimes an invalid result can create further research of another facet of the original idea set forth. Hypothesis testing is a process that uses statistical data in order to determine if an idea is able to be supported or warrants further research within a certain population that the idea or prediction seems to apply to, and is used by researchers (Aron et. al., 2009). There are five steps involved in this research process. The first step is to pose the question related to the idea or prediction as a logically formed statement called a research hypothesis. In addition to this statement, there is also a statement that is the complete opposite of the research hypothesis statement, called a null hypothesis statement (Aron et. al., 2009). Both these hypothesis statements are......

Words: 729 - Pages: 3

Free Essay

Hypothesis

...A2 Biology Coursework A1- Develop a hypothesis Outline your biological knowledge or research related to the problem under investigation Yeast are eukaryotic species and make up approximately one percent of species in the kingdom Fungi. One of the most well studied yeast species, Saccharomyces cerevisiae, commonly known as bakers yeast, and also used in the fermentation of alcohols, is a model species for the study of eukaryotic cells. They are known to reproduce either sexually, by mitosis, or asexually, by budding, depending on environmental conditions. Yeast grow and reproduce by producing enzymes to catabolise polysaccharides. Upon maturation the parent cell passes its genetic information to the bud which then becomes a genetic copy of the original cell and adds to the population. A growth curve demonstrates the four stages of population growth for a yeast cell as follows: Diagram 1. Reference: http://classconnection.s3.amazonaws.com/33/flashcards/602033/jpg/bacterial_growth_curve1320203184633.jpg Lag phase: Indicates the process of assimilation of nutrients by the initial population. Growth is restricted as the yeast are adjusting to their environment and synthesising cellular macromolecules. Exponential phase: Growth is increasing rapidly at this stage and competition for resources is minimal allowing for the yeast to bud at maximum capacity. Stationary phase: The population is now stabilising as resources become depleted and competition......

Words: 3020 - Pages: 13

Free Essay

Hypothesis

...Hypothesis Testing Paper PSY/315 - Statistical Reasoning in Psychology December 16, 2013 Jennifer Slothower Hypothesis Testing Paper There are many reliable sources that are readily available for researching topics, whether it is for personal or professional use. Two of these sources are known as the Internet and the Yellow Pages. Based upon the test performed, to determine if the Yellow Pages will become obsolete in the near future, the following information was found based on the hypothesis and test results that have been recorded in the passage. There are many people who would prefer the use of the Internet to the Yellow Pages because of the convenience and not having to flip through pages to find what you are looking for. The Yellow Pages have become a thing of the past and is quickly being replaced by new research methods individuals can access via the Internet. In the past twenty years the Internet has continued to grow into what we know today. In 1993 the first primitive search engine was released (Seymour, Frantsvog, & Kumar, 2011). Google became the prominent search engine around 2000 by using an algorithm to rank web pages; the desirable pages would be linked more than others based on importance (Seymour, Frantsvog, & Kumar, 2011). With the growth of the Internet and the rise of technology, there has been an increase in the number of businesses that use the Internet for marketing (Salehi, Mirzaei, Aghaei, &Abyari, 2012).......

Words: 1241 - Pages: 5

Premium Essay

Hypothesis Testing

...Hypothesis Testing Opinions of Social Security System Probability and statistics August 1 2013 1. The Problem In an effort to design better advertising campaigns, the public relations department of the Social Security Administration conducted a survey to find out the opinions people in the United States have about the Social Security System. The public relations department collected and analyzed the survey data and claims that 40% of people in the United States think the Social Security system will have money available to provide the benefits they expect for their retirement. Also, they claim that the average age of people in the United States who would say yes to this question when asked is 60 years or older. The purpose of this study is therefore to examine and test the hypothesis of these claims and determine whether they can be supported or rejected for advertising purposes. 2. The Research Design and Hypothesis To test the hypothesis, a data table was collected from a survey adapted from Newsweek, by the public relations department of the Social Security Administration. The survey consisted of data from 32 adults ranging in age from 18 to 83. The study examines the two hypothesis by utilizing the classical method to construct a condition for testing the hypothesis claimed by the public relations department of the Social Security Administration. In this case, the null hypothesis is 40% of the people in the United States think the Social......

Words: 995 - Pages: 4

Premium Essay

Coca-Cola Null and Alternative Hypotheses

...“Hypothesis testing is one of the fundamental concepts in both scientific research and business decision-making. It involves establishing a hypothesis (or guess!) about the outcome of an event or experiment and then gathering evidence (data) to make a decision on whether the hypothesis should be accepted or rejected” (Colorado Technical University Online, 2010a). Null Hypothesis – H0 “The null hypothesis is the statement being tested. Often, the null hypothesis is a statement of ‘no difference’ or ‘no effect.’ The null hypothesis is not rejected unless there is convincing sample evidence that it is false” (Bowerman, O’Connell, & Orris, 2012). Say for example that a two liter of Coca-Cola is $1.89 at your local grocery store and you like Coke, not Pepsi, can’t even imagine drinking it. If the price went up to $2.19 would you still purchase the product? If the answer is yes, then the null hypothesis is that raising the price of Coke would not adversely affect customer loyalty and brand purchase. We would then test this theory in Step 2. Alternative Hypothesis – H1 “The alternative, or research, hypothesis is a statement that will be accepted only if there is convincing sample evidence that it is true” (Bowerman, O’Connell, & Orris, 2012). Using the same example as above, but adding in a factor that you are on a tight budget, you decide not to purchase Coke or actually consider trying to learn to like drinking Pepsi. Then the alternative hypothesis is......

Words: 904 - Pages: 4

Premium Essay

Hypothesis Testing

... Hypothesis Testing PSY/315 Jenna Griffin Amber Lupo Suppose that a doctor claims that 21 year olds have an average body temperature that is higher than the commonly accepted average human temperature of 98.6 degrees Fahrenheit. A simple random statistical sample of 25 people, each of age 21, is selected. The average temperature of the 21 year olds is found to be 98.9 degrees, with standard deviation of 0.6 degrees. The claim being investigated is that the average body temperature of 21 year olds is greater than 98.6 degrees. This corresponds to the statement x ≥ 98.6. The negation of this is that the population average is not greater than 98.6 degrees. In other words the average temperature is less than or equal to 98.6 degrees. In symbols this is x < 98.6. One of these statements must become the null hypothesis, and the other should be the alternative hypothesis. The null hypothesis contains equality. So for the above, the null hypothesis H0 : x = 98.6. It is common practice to only state the null hypothesis in terms of an equal’s sign, and not a greater than or equal to or less than or equal to. The statement that does not contain equality is the alternative hypothesis, or H1 : x >98.6. The statement of our problem will determine which kind of test to use. If the alternative hypothesis contains a "not equals to" sign, then we have a two tailed test. In the other two cases,......

Words: 549 - Pages: 3

Premium Essay

Hypothesis Testing

...Hypothesis Testing Paper Hypothesis testing in statistics goes beyond the traditional acceptances of trying to prove a hypothesis correct. Hypothesis testing is matter of accepting what has already been proven until another hypothesis is verified to be true. In the essay, an overview of the hypothesis testing process is described using a fictional example and numerical values to detail the process. The idea formed by the hypothesis, “online students have more stress than traditional on campus students”, is to reject the hypothesis that online college students experience less stress than on campus college students. This is in no way true findings; it is a fictional example to help walk the reader through the steps of hypothesis testing. Hypothesis testing is a king of research used to say how a certain topic of interest will end or how researchers think it will end in the environment. The testing will show that just because one forms an answer it does not prove that the answer is correct for there are many factors that could change the outcome, which is why researchers use probability rates of five or one percent. The null hypothesis endeavors to show that there is no variation between variables, or a single variable is no different from zero. It is surmised to be true until statistical evidence nullifies it for an alternative hypothesis. Null hypothesis is a hypothesis that the researcher endeavors to confute, reject, or nullify. The research hypothesis is the......

Words: 1158 - Pages: 5

Premium Essay

Null

...Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null Null...

Words: 372 - Pages: 2

Premium Essay

Hypothesis

...Wire Company? 5. A hospital spokesperson claims that the average daily room charge for a specific procedure is $622. Can we reject this claim? WHAT IS A HYPOTHESIS? Hypothesis: A statement about the value of a population parameter developed for the purpose of testing. Examples of hypotheses, or statements, made about a population parameter are: The mean monthly income from all sources for systems analysts is $3,625. Twenty percent of all juvenile offenders ultimately are caught and sentenced to prison. Hypothesis testing: A procedure, based on sample evidence and probability theory, used to determine whether the hypothesis is a reasonable statement and should not be rejected, or is unreasonable and should be rejected. lFollowing is a five-step procedure for testing a hypothesis. 5 STEPS IN THE HYPOTHESIS TESTING PROCEDURE 1. State the null hypothesis and the alternate hypothesis. Null Hypothesis – statement about the value of a population parameter. Alternate Hypothesis – statement that is accepted if evidence proves null hypothesis to be false. Tests of Hypotheses: z-test and t-test 0801-HypothesisTests.doc Page 2 of 4 NOTES 2. Select the appropriate test statistic and level of significance. When testing a hypothesis of a proportion, we use the z-statistic or z-test and the formula ˆ p− p z= pq n When testing a hypothesis of a mean, we use the z-statistic or we use the t-statistic according to the following conditions. If the population standard deviation, σ, is......

Words: 1347 - Pages: 6

Premium Essay

Hypothesis

...experimental conditions and then the interest is in knowing whether there exists a significant difference in the value of the variable under different experimental conditions or different periods of time. To know this one need to perform a hypothesis test. In hypothesis test one starts with the null hypothesis that there exists no significant difference in the mean value of the variable under the conditions or time periods in the study and an alternative hypothesis that one of the means is significantly smaller and / larger (depends on the problem) than the other mean. This hypothesis is tested using suitable statistics (z-statistics, t-statistics, F-statistics etc.) at certain significance level (probability level). The outcome of such a hypothesis test helps us in determining whether or not there is a significant difference in the value of the variable under two different time spans or experimental conditions under investigation. I am working as a police officer in southern California, therefore, I decided to perform hypothesis test on a data pertaining to crime rate. I have chosen to examine the question, whether there is any significant drop in theft cases between 2007 and 2008 in the city I work, using suitable hypothesis testing. The statistical analysis is presented in this paper. 2. Data Collection - Proposed As I am working as a motorcycle cop it was easier for me to get data pertaining to different crimes. As this data is......

Words: 1582 - Pages: 7

Premium Essay

Hypothesis Testing

...Hypothesis Testing Question for self-study: 1. Mary Arnold wants to use the results of a random sample market survey to seek strong evidence that her brand of breakfast cereal has a least 20% of the total market. Formulate the null and alternative hypothesis, using P as the population proportion. 2. The Federal Reserve Board is meeting to decide if it should reduce interest rates in order to stimulate economic growths. State the null and alternative hypothesis regarding economic growth that the board would formulate to guide its decision. 3. John Stull, senior vice president of manufacturing, is seeking strong evidence to support his hope that new operating procedures have reduced the percentage of under filled cereal packages from the Ames production line. State his null and alternative hypothesis and indicate the results that would provide strong evidence. 4. During 2000 and 2001 many people in Europe objected to purchasing food that was genetically modified, produced by farmers in the United States. The U.S. farmers argued that there was no scientific evidence to conclude that these products were not healthy. The Europeans argued products were not healthy. The Europeans argued that there still might be a problem with these foods. a. State the null and alternative hypotheses from the perspective of the Europeans. b. State the null and alternative hypotheses from the perspective of the U.S. farmers. 5. The 200- presidential election......

Words: 2182 - Pages: 9

Only Fools And Horses | Jon Hamm | Big Tits In Sports (37)